37% of Offline Retail Sales influenced by Web

Total retail sales in the US in 2016 were $3.39 trillion; mobile influenced one-third of those sales because consumers use their mobile phones as tools to find products locally. However, to use mobile channels to influence customers, companies must be fundamentally digital, with digital inventory, store maps, coupons, loyalty cards, and more. Digitizing a retail business costs tens, if not hundreds, of millions of dollars.”

Mobile-Influence-Forrester-Feb-2017-619x480

The above infographic also shows that more than 2/3rd of the Web influence on Offline sales is coming from usage of Smartphone.

Assuming that in India the influence of smartphones is around half of what it is in US, we are still talking about USD 13-15Bn of influence on sales in the Organized Retail sector by 2018-19. (Assuming that around 10% of the retail sector falls under Organized Retail out of a total market of nearly USD 950Bn in 2018-19.)

indian_retail_size

(Please note the estimates above are with the assumption that in India the influence of Web & Smartphone will be 50% as that of US. There is no separate estimate of Web/Smartphone influence in India.)

This shows the importance of having a good Digital Strategy in Offline Retail sales in India and this can be a good selling point for Proximity Solutions which can have an increased influence on consumer behaviour at the location.

(Source: https://www.forrester.com/report/The+Biggest+Prize+In+Mobile+Commerce+Is+Influencing+Offline+Sales/-/E-RES136483 & http://www.geomarketing.com/mobile-influenced-2-trillion-in-retail-sales-in-2016)

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